Important! Things NOT to do during the loan process....

Reblogger Mary M. Kandell
Real Estate Agent with Russell Real Estate Services
https://activerain.com/droplet/j7r

I know you want NEW furniture for your NEW house....but PLEASE WAIT until after your docs have been filed at the courthouse.  A shiny NEW car in your NEW driveway?  A stellar idea AFTER your docs are filed at the courthouse.  A NEW credit card would make it all more convenient, but DON'T DO IT!!!...until after your docs are files at the courthouse.
There are so many ways to muddy up the loan process.  Here is an excellent post from Sheila Goulart Siegel with great reminders on how to keep things moving in the right direction.

Original content by Sheila Goulart Siegel

There are things you should never do during escrow, whether refinancing your current home or purchasing a home.  Once you are qualified for a home loan, ANY change in the financial snapshot that is your loan application can change your approval. 

Below is the advice I include in an "important information" document in my new loan set up package for each and every client:

During the process

Many times the lender will ask that we re-verify credit, income, employment and asset information.  This can even happen after you have signed your final loan papers.  With this in mind, we ask that you comply with the following items.  Please do not apply for or obtain any additional credit.  This includes real estate loans, auto loans, credit cards, 401K loans, personal loans, etc..  Co-signing on someone else's loan is also a problem.  This even includes inquiries to your credit.  Do not quit your job or change jobs unless it is in the same line of work, you have no job gap and it is for equal or more moneyPlease let us know if you anticipate changes like this as well as we can help you plan for them.  Do not spend money unless it is necessary to do so (for monthly living expenses for example).  Do not furnish your new home during escrow or buy new appliances.  Wait until you close escrow so that your purchases do not jeopardize your escrow in any way.  Do not change bank accounts or transfer funds between accounts In fact, save as much as you can.  The bank likes to see increasing bank balances.  Keep in mind that ANY changes can affect your loan application and approval and can change or jeopardize the terms of the loan and the loan processing as we have discussed.  Please call us if you need to make any changes and we will discuss options with you, in terms of timing and how this will affect your terms, if it will.  Please make sure you continue to make all payments on time and keep copies of your paycheck stubs, bank statements and any bills we will be paying off with the loan.  Be sure to make payments on all items before the due date, even if they are being paid off with the loan.  Please call us if you have any questions.

 

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Ambassador
1,243,630
Kristin Hamilton CA Realtor
Sun Lakes Realty - Banning, CA
(909) 557-6966- Specialize 55+ Communties Banning

Yes I have had buyers purchase furniture. I had said "Do not buy anything" but the salesman when they went to LOOK ONLY said if they charged it, it wouldn't show up for months on their report. WRONG!

Jul 01, 2011 08:20 AM #1
Rainmaker
205,310
Mary M. Kandell
Russell Real Estate Services - Sandusky, OH

If they would just listen and believe we know what we are talking about

 

Jul 01, 2011 08:29 AM #2
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2,928,884
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

One of my agents also works part time in a jewelry store.  She talked clients OUT of a $7000 sale because they mentioned they were buying a house.  She knew it could hurt and they called their loan officer and he said "NOOOOOOOOOOOO, don't do it"  Now I know they'll go back to buy that ring after the house closes from her and I think she'll also have a new real estate client for the future since they weren't told that by their agent.

Jul 01, 2011 11:00 AM #3
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Suzanne McLaughlin
Sabinske & Associates, Inc. (Albertville, St. Michael) - Saint Michael, MN
Sabinske & Associates, Realtor

Oh, Mary, we had a guy quit his job and move to a new one.....one week before closing.  My broker nearly had a heart attack....but he closed and moved to his new home and listed the old one with us and we sold that one, too.  All in the last three months!

Jul 01, 2011 02:32 PM #4
Rainmaker
205,310
Mary M. Kandell
Russell Real Estate Services - Sandusky, OH

Tammy,  I think I would LOVE to work in a jewelry store.....how are the commissions there?  No, really, you have one smart agent there.  And since she may have "saved the day"  by offering her timely advice, I'm sure those clients will tell their friends and their friends will tell their friends....

Suzanne,  Sounds like an all around success story to me.  When job opportunities arise, we have to be ready to respond.  Sometimes timing can be everything.  Glad it worked out for him....and for you.  Happy 4th

Jul 02, 2011 12:18 AM #5
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Mary M. Kandell

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